SOURCE: GPS Industries, Inc.

April 18, 2006 10:51 ET

GPS Industries 2005 Sales Increased by 166% Over Previous Year

NEW YORK, NY -- (MARKET WIRE) -- April 18, 2006 -- GPS Industries Inc.(OTC BB: GPSN), a leading innovator of Wi-Fi and GPS-enabled multimedia communications and management solutions for golf facilities, resorts, sporting events and residential communities is pleased to announce that the company just released Form 10-KSB, GPS Industries (GPSI) achieved a 166% sales increase for fiscal 2005, increasing from $2.18 million in 2004 to $5.82 million in 2005. The company is also releasing guidance for 2006 sales, projecting a further increase in 2006.

"We are miles ahead of where we were just a year ago," says CEO and President Robert Silzer, Sr. "We have dramatically elevated our presence in the industry and the reliability of our technology gets a lot of the credit for that," Silzer adds. "Our sales are growing exponentially and 2006 will be a breakout year for us."

To date GPSI has installed their Wi-Fi enabled INFOREMER™ GPS system at 74 golf facilities around the world. Currently averaging two new system sales per week, the company is projecting 45-to-50 new installations through the end of 2006. In fact, almost $4 million in sales have already been booked through early second quarter. According to Silzer, "The sales trend is positive, and our efforts are to maximizing operation efficiencies."

Along with this impressive sales trend however the company's Form 10-KSB also reflects a substantial increase in financial charges and expenditures. "Growth is always an expensive proposition, especially in a technology-driven business like ours," says Silzer. "Obviously we are continuing to innovate and enhance our technology."

The 10-KSB bears out the fact that Engineering and R&D costs have risen by approximately 59%, due largely to continued product enhancements. "But the main reasons for the pejorative financial report," explains Silzer, "are non-cash charges totaling $9.8 million, including almost $6.5 million caused by a fair value adjustment in derivative liabilities associated with our convertible debt financing."

"At the same time," he adds, "the 10-KSB also shows that our COGS (Cost Of Goods Sold) are actually 27% lower as a percentage of revenue this year. Administrative costs are also lower, by almost 60%."

Additional expenses are attributable to the protection of GPSI's 29 international patents; these relate primarily to the use of Differential GPS (DGPS) technology on golf courses. Last November the Company initiated legal protection of those patents in the United Kingdom. According to Silzer, "GPSI is continuing to pursue action against those infringing on our patents."

About GPS Industries, Inc.

The company's unique suite of systems and software maximize operational efficiency while also generating significant new revenue streams. The company's patented InforemerTM GPS system is a comprehensive golf management solution, combining powerful backend management tools and revenue generating modules with mobile handheld or cart-mounted full color display screens, seamlessly connected via a high-speed wireless network. GPSI owns the patents covering golf-related GPS technology for all major golf markets worldwide, including North America, Australia, Japan and 11 European nations. GPSI's Board of Advisors includes legendary golfer and businessman Greg Norman.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: The Company's ability to raise finance; global and market conditions within the golf industry; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; pricing pressures and other competitive factors; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Other brands and names contained in this release are the property of their respective owners.

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